Skip to main content

About this Show

Your World With Neil Cavuto

News/Business. Money tips from Wall Street. New. (CC)

NETWORK

DURATION
01:01:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel v760

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
1280

PIXEL HEIGHT
720

TOPIC FREQUENCY

Us 8, Neil 6, Washington 5, China 4, Irs 3, California 3, Geico 3, Neil Cavuto 2, Scottrade 2, The Irs 2, Ben 2, Turkey 2, Bernanke 2, Max Bachus 2, Ocuvite 2, At&t 2, Obama 2, Maryland 1, Nausea 1, Jerry 1,
Borrow a DVD
of this show
  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    June 20, 2013
    1:00 - 2:01pm PDT  

1:00pm
>> a bad day for your 401k but if there's a lining to be found, my man neil cavuto will. so stay tuned for him right now. >> neil: thank you. just call it a summer bummer, ben hints and the markets wince. catch your breath. welcome, i'm neil cavuto inch yesterday's selloff wasn't enough, take a look at what happened today. stocks rocked by talk -- just talk -- that the fed chief ben bernanke may ease up on the easy money, and maybe sooner than how to thought. probably in the fall. growings fears that ben himself is already almost out, mite north even finish the term, also could be out this fall and it's not just stocks getting slammed. look at gold prices, at the lowest level than more than two years. bonds are also plunging, and you know the drill there when they
1:01pm
go down, interest rate goes up, and the fear the rates are going up higher tends to rattle investors. still, those rates are still at or near record low levels. the fact of the matter is, they aren't what they were and people don't like that. so, we're on top of all of this, and where we go from here with peter on the next move, and charlie, and melissa, on ben bernanke's next move. and former paine weber boss, should move. peter, much ado here about just a little something? or are they on to something? >> well, markets are clearly on to something. there's been a significant shift in terms of how the fed intends to manage its policy. quantitative easing, or shy say stimulus, and as a direct result, the risk offtrade is
1:02pm
becoming significantly less attractive. there's less of a bid for equities as the reflation o havs like it's going to be coming to an end in the fourth quarter. so it's a less certain that equity prices will continue to appreciate in value, as the result money is rotating out of the high buyers, and more toward the dividend oriented picks picd it's dysfunction. >> guys who study this brilliantly every day, reminds folks like me that things go to extremes and already the people are saying, all right, after 500 points in a couple of days, is that an extreme 0, given the fact the mark has run up so far so fast and even now is up 13's here today, is more coming? >> well, more volatility is certainly coming. have we soon the high of the
1:03pm
year? not sure, but for the near-term we have seen the high across the nasdaq, s&p 500 and the dow, more volatility. going through a period of rotation but there's something positive, and even though we see daily dislocations and wild swings, earnings have been strong, corporate balance sheets are very tromping there's lots of very, very positive in turn -- terms of narrative, housing. there's a lot of fairly solid underpinnings in the market so not as if one or two days or a month of volatility should disappoint people in terms of their -- >> neil: before i lose you, peter, the issue today was that ben bernanke and the so-called tapering, slowing down the buying of treasury notes and mortgage securities, art officially kept the lates -- artificially kept lowest.
1:04pm
it might taper down to 65 as soon as september. >> currently it's 85 billion a month. i don't think it's going to be september. i think we should expect something in terms of a formal shift somewhere in the fourth quarter. november, december. i think it's coming this year, at least the initial steps. >> thank you very much. i just want to remind folks that's been the markets a view. the federal reserve is going to be there, the big backer of everything that you have been seeing going on, and all these -- they would always provide the nicotine, the relief for the market. if all was in doubt they would keep interest rates low. now the fear is not that this was going to end -- everyone knew it would might end -- that it might end southeastern than we thought and the dimensions of it ending are going to be bigger
1:05pm
than we thought. who knows. that's the fear. and today it was paramount. in the meantime, did president oba actually, even accidentally, add fuel to what was fire when he said this? >> ben bernanke is a little bit like bob mueller, the head of the fbi, where he has already stayed a lot longer than he wanted or he was supposed to. but i think he -- >> if he wanted to be re-appointed, you would re-appoint him? >> he has been an outstanding partner ask. >> neil: that's like my boss saying neil is one heck of an anchor and leaving it at that. think of what the president was saying about the fed chief? the president appoints the fed chief could re-appoint. he is saying he worked hard and, bye-bye. don't let the door hit you on the way out. what does that mean? to charlie and melissa. i don't think -- charlie, you first -- a feeling that the
1:06pm
president would re-appoint bernanke been anyway, but almost getting the impression he fired him on national tv. >> he pulled the rug out from under him kind of an ingracious way to do it because ben bernanke got him elected by pumping all the money into the economy, and being the only thing promoting economic growth because his fiscal policies he even admits fail. that's pretty bad. i was shocked at bernanke's statements yesterday. they were clear and concise and said in clear terms that we're going to end this, when we get any sort of indication it's probably going to be over. we may even end et al. together next year if the economy starts to improve. he knows the markets are so volatile, on tender hooks about ending quantitative easing, and you have to thicket was payback. >> neil: normally, they stay before you fire a person, make
1:07pm
sure you have their security pass. and check they don't have weapons. but in this case, the powerful weapon. i'm not saying -- there could be the temptation to say i'm going do it sooner than the market thinks. >> i don't think what the president said was an accident. i don't think he says anything accidentally. and you can read a lot into that. and there has been a ton of chatter since that interview, talking about, wow, this is really the end for ben, and i don't -- >> neil: threw him under the bus. >> it's a really tough thing for the markets because you look at how volatile they are with any change. this guy got us into this mess. this is the guy that invented the formula. do you take the pilot out of the helicopter while it's flying? it's crazy. >> think about what obama knows. he president knows that ben bernanke is worried about asset
1:08pm
bubbles. that's why he may have to end quantitative easing. he knows his statement will be hear. and indicate the end of the crack cocaine in the market is -- it's coming. right? so what he. he says that and then he starts floating bernanke's likely successor, which is ben bernanke's steroids. >> mel lisa, say what you will about' bernanke, and a lot of people, mitt romney among them, who bemondial of this flooding cash in the system, it was artificial. but many argue on the right and the left that he seemed to be-ben bernanke, the only adult still standing, and now that date is going and we're left to -- the congress can't get anything wrong, the president can't against anything done, so scandal plagued. >> the real danger is that interest rates rise and damages
1:09pm
the housing recovery. it's been the strongest again and again. house is coming back. one of the big reasons is because interest rates have been so low so as we see all this volatility, interest rates goes up and that hurts the housing market. >> ben bernanke is worried about there's a bubble in house, because it doesn't reflect unemployment -- >> and reflects low entity b rates. >> and is worried about bubbles in the bond market. he wants to deflate this. the president -- >> neil: it's not personal, just business. >> somewhat personal and business. if you look at who he wants in there janet young, ben bernanke on steroids. i think she would go back to a more accommodation policy. >> neil: i want you to focus on other developments abroad and that was this was global and that china was a big part of it, particularly china, shy say, because indicates out of that
1:10pm
country its manufacturing sector is slowing mightily, and then patrick wolf, big fun manager, he thinks the chinese market is going to crash. he said that in a reuters interview that holds no more weight than just his opinion, but because he has been so savvy on these markets, it carried and weight, and is a china goes, you get the feeling it's sort of cascades and away we go. we have some glowing in nate -- global in that it tour and it looks pretty big. what do you think? >> you're a hell of an anchor, neil neil. >> you think that the fed believes the economy is getting stronger. that's the key thing here. and secondly the fact the markets are very nervous. that's the broad sense of what
1:11pm
is going on here. i take this as a very positive sign. bernanke wouldn't say this or think this or plan to do it if he wasn't seeing numbers that superintendent the economy is getting better. consumers are sawing more and spending intelligently, business managers are running businesses better. we're probably going to have growth a little bigger than people expect -- >> neil: but the world market enter its it as bad news because we have -- >> we have had an artificial economy for the last three years. he saved the economy. now he is in the process of mapping the economy. you look at the second part, managing is harder than saving because you can do different things rather than one thing. so the market feels uncertain about this. natural for it to be uncertain. in the risk off, risk on world, when they're not sure, they stop everything. >> neil: you were around during the '87 market crash and crashettes.
1:12pm
before and after. what do you watch for for something that overstays its welcome? in other words, just vote of keeps going on and -- just kind of keeps going on and on. >> you see if you missed something. this artificial economy, interest rates are out of whack. they're killing all kinds of investors, starting with retirees. so how long it lasts is how long it takes for all of these people to look further into the numbers, and come up with something that satisfied or at least making -- >> that gets to the question on how high should interest rates really be. some say if the fed were to just quit riding the apron strings for us, that maybe they wouldn't be that dramatically higher anyway. >> i think they're ready to give the economy a chance to operate on its own. that's what i heard out of bernanke. staying there with the safety net, maybe it's a little smaller or lower down, but staying with that in case things aren't
1:13pm
right. >> neil: let's say we get right and china goes not get right or they're in the middle of. -- imploding. and anyone we have a global contagion. the u.s. could benefit because we don't look as contagious. >> absolutely. we look like we're solid and sorted it through and we have a mechanism in place to make it better and have a safety net, and we have it in the hands hanf smart people, which would be an arguement to think hard about the idea of changing management? mid-stream. >> neil: don, been through many bull and bear markets with you, my friend. thank you very, very much. we want to put this in perspective. we are not even into correction territory here. with the dropoff today, we're still up about 14% on the dow year to date, and we should also
1:14pm
posit that by day's end, some of that volatility in the market had eased. you wouldn't know it by looking at that but healthcare is going to play a very big part in this. i didn't want nicotine to give up nicotine. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. [ mike ] when i was taking the chantix, it reduced the urge to smoke. [ malennouncer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop taking chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if y have symptoms of a heart attack or stroke. use caution when driving or operating machinery.
1:15pm
common side effects include nausea, trouble sleeping and unusual dreams. it feels wonderful. i don't smoke. i don't smoke. [ male announcer ] ask your doctor if chantix is right for you.
1:16pm
1:17pm
i want to show you what'shawk in the last couple of days. the nasdaq a little more than 3.2%. probably more indicative of the overall market. but all are up double-digits this year. here's what is rankling them. interest rates backing up. still very low but they follow the ten-year treasury note and the yield on that is approaching 2.5%. still very, very low. but it's about double what it was from its real lows, and that is the fear here, that is going to keep happening, keep happening. of course, this bond bubble you hear so much talk about, is generated from that, from what
1:18pm
is going on. with that ten-year note and interest rates in general and gets back to the federal reserve. and this starts taking away the punch ball and doesn't buy as men treasury notes and interest rates good up. the only question is how much further up? the ceo of valley national bank here. jerry, what do you think? a genuine fear that rate goes markedly higher? >> i believe they'll go higher but i'm not sure it will be in a straight line. i think the comments that the chairman. , mr. bernanke, made yesterday -- i thicket was an overreaction to the fed. if you listen carefully to what he said, he also -- he based a comment that his six and a and f percent level of unemployment was more of a guide than it was
1:19pm
an absolute floor. >> neil: we should explain, before he would really be taking his pedal off the metal it would have to be because unemployment had gotton to the point that things were dramatically improved. now, we're nowhere near that -- what do you make of that. >> he also pointed out in his comments that the low labor utalizeation level may cause the fed to change they're point of that and change that number to 5-1/2 percent if necessary. number seek to pick up on that' comment. they heard what they wanted to hear -- >> neil: that is true. you're an inenpsych low speeda. one thing i hear a lot of people say is that no matter what, whether interest rate goes
1:20pm
higher or a lot higher, they're not going to stay as low as they are but perspective is everything. to older americans, these are already obscenely low rates and i remember the board viewers here, when my wife and i got our first home, we thought we are geniuses, got a mortgage at 13-1/2%. younger people today, that's outlannish, -- outlandish, have gotten used to three or four percent mortgages. >> i think you're correct. there's movement of home mortgage rates upward. i don't know that they're going to move up dramatically. certainly not enough to really cause panic. but i do think that if somebody were thinking about refinancing their home, they better get on the ball and do it now. i think if somebody is thinking about buying a home, by all means they should be trying to take advantage of the low
1:21pm
interest rates that still exist. remember, a 4%, 30-year fixed rate mortgage is almost unhead of in the hoyt of this -- history of this country. >> neil: what what my wife and i paid a day. i only slightly exaggerate. what happens now? you probably saw it because you follow the markets, how these storks were down a lot today. the housing bubble is here. what do you think? >> i think there's a shortage of housing that already exists in this country, and i think at least in this part of the country. i can't speak for all of the country. and i think that that shortam is going to be addressed -- shortage is going to be addressed. new home construction has been at record lo level. >> we're going to keep following that, keep following the rates, keep giving you some perspective
1:22pm
and talk about how washington could still screw this up. keep the fed out of it. i'm talking about congress and the white house and talking bat healthcare bill that is getting very pricey. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t
1:23pm
have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪
1:24pm
1:25pm
premiere home builder stocks today, stock losing almost 10% in a single day a bit overdone or construction companies, folks that help dig the homes to build the homes? is that overdone? agreeing -- greg grant, a big home builders. >> home builders are long-term players. they're stocks are going up because housing is improving.
1:26pm
this short stiff us not a -- stuff is not a big development they're dealing with acquiring attractive land, deciding to break ground, house shows up. all very long-term stuff. >> neil: investors, are they punishing a bit too much? do they think a slight raizy rates will deray all of this? wouldn't it get you -- if you were a prospective home buyer, couldn't it get you i got to move. >> it should go back up again. if you think about the last couple of years we have had rates at these levels levels and haven't seen it stimulate home buying. i see it cross the country. a matter of the fact people saying the worst is behind us, isn't that great but i just want to move on will be life. we have money to boy -- buy a
1:27pm
house. >> harder to qualify. >> if the rate goes up it's -- >> from a housing perspective, volatility is not a friend of the housing market. i coned like to see home prices go up. that's based on short-term constrain -- >> neil: we're talking about depressed levels, so don't overanalyze this. >> whenever you see double digit appreciate in the housing numbers those aren't real. >> neil: where do you see mortgage rates. >> i see them going back to five or six. if they city under seven dish remember people were refinancing to eight and a quarter. >> neil: that's been a generation, and then the argument is younger people, including many of these in this studio, i say those are life rates but they're kicking themselves issue missed out on the three-something --
1:28pm
>> missed out on below 200. >> what do you tell people like that? >> if you're ravedy to by a home, and you're going to stay in at it long time and have decent down payment, don't worry. it's a life decision but -- >> neil: getting off the fence, helping, which has been tight earlier, gets tighter and they want to buy and can't. how real is that. >> how real is people that want to buy and can't? that's real. a whole industry now that is acquiring nice homes and leasing them long-term to tenants. this here to tell us usually just a bump in the road. neil: there were other factors affecting the market. the thought the healthcare law would be delayed. and the thought it was going to cost more. now they putting a $2 billion handle on it. the author of beating obamacare,
1:29pm
warning about this that could be a drain of -- on us and our market. >> certainly full of surprises and this week a lot of very nasty surprises rolled out. the chief auditors for the government, the gao, announced the health insurance exchangeses are 85% unready. >> neil: why is this among the factors rattling markets and investors? you can't pull the rug -- >> you can't plan. employers are very concerned about whether they're going to keep their employees on health insurance. they're supposed to be able to allow them to be enrolled in exchanges. if they decide not to continue insurance, but the exchanges may not be ready october 1st. in fact, the government's chief auditor announced that the shop exchanges, which are for small businesses, will not be ready to offer a choice of insurance plans october 1st.
1:30pm
>> neil: obviously lat of the medical related stocks were down on this and other news, bus there does seem to be this collective notion, it's going to be a financial head wind they're facing and going to be tougher to make as much money. a lot of average folks say, they earn money hand over fist anyway. you say what? >> we have seen the major insurers like aetna and cigna are staying out of the largest markets, including california, because they don't think they'll be able to break even or make money under the health insurance exchange rules that are belatedly being rolled out right now. >> neil: is it your sense they have to address all of this but the upside will be more money to address. they're not going to junk it. >> a lot of monkey business. the federal government has
1:31pm
awarded $3.8 billion in taxpayer money to the 17 states that have volunteered to set up their own health insurance exchanges. california got the biggest chunk out that, $910 million. but what did they do with it? california lawmakers turn around and passed a law right away saying, they're going to keep secret how they spend the money, they also passed a law saying that the exchanges will include voter registration, and then they turned around and made large grants to 47 organizations, only a handful of them health care helping organizations. the maacp, the big union, to afl-cio, and commune activists to go door to door about the halve insurance exchange. business smells -- >> neil: betsy, thank you very much. let's say something happened. investors decent like that. how about democrats? one of the top ones, on next.
1:32pm
[ bell dings ]
1:33pm
[ crowd cheering ] [ male announcer ] for sensitive skin, there's fusion proglide. our micro thin blades are thinner than a surgeon's scalpel for our gentlest shave. switch to fusion proglide. gillte. the best a man can get.
1:34pm
humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car,
1:35pm
we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? a big selloff today, better than 550 points in the last two days. is this indicative of a bigger trend? for the last eight days these triple digit moves have become more the rule than not. but of course this year, stocks are still up a lot more than they are down, to house minority whip and maryland democrat,
1:36pm
steny hero -- hoyer on this. a lot of this was fueled under the idea that bebernanke is going to take the punch bowl away or slow down what is making these guys happy. they're not happy he is going to take his foot off the pedal. what do you think of that? >> i'm not an expert in this area, but seems to me that what director bernanke was saying it, he thinks the economy is doing better, growth, jobs, and that we no longer need the stimulus he was prepared to give, at least not cutting immediately but over time, and the market responded that -- to frankly good news, as if it were bad news. and it may be bad news for them because he's going to stop putting money into that which has been perhaps inflating the market.
1:37pm
so, beyond that, it is somewhat ironic that bernanke says, the economy is doing pretty well so we don't have to do so much, and the stock market responds negatively. neil: that's actually dead on. and you're right about that. what does it say about our environment right now, congressman, whether it is the federal reserve providing the tonic for investors or the idea that if at all doubt the government has our back, and here's the fed chairman saying, you seem to be doing okay on your own. >> i think it says a lot of about instant -- uncertainty. we still have a federal government, congress of the united states, that is not giving certainty and confidence to the economy, that we're going to been a sustainable, stable path, come to compromise, whatever the bills might be, whatever the policies might be, that we will overcome gridlock.
1:38pm
and i think in that framework, they environment of uncertainty, the federal reserve's comments have a greater impact, and shake certainty even further, and people are hedging their bets by getting out because they're not sure if things will be getter. so i'm one of those, as you know, that believes very strongly that we need to get our country on a fiscally sustainable path. i talked with mr. cantor today about going to a conference on the budget been so we can come to agreement, and have a bipartisan agreement on at least numbers and some policies. so, i'm not sure what exactly -- i don't know i can quantify the impact that has but there's no doubt in my mind that our failure to come to agreement on whatever the legislation is, the farm bill failed because of very partisan additions that were put
1:39pm
on by the republicans. we came out of the committee with a bipartisan vote, the majority of democrats voting for it, the overwhelming majoril of run ares voting for it -- >> neil: do you think the president bears any blame and all of these scandals, whether his open doing for the white house's doing, and i guess the investigations will get to the bottom of these -- that it casts a pall, that -- each is their own case, grant you but it frustrates americans to think that at the very least he is out to lurch and at the very worst he is behind this. >> no, i don't think so, neil. i frankly think this lack of confidence, this uncertainty, predates -- i don't call them scandles. i think some people made very bad mistakes and did wrong at the irs. i don't think it had anything to do with the white house and don't think it had nothing do with washington. there's no proof that the
1:40pm
testimony or otherwise that washington or the white house were involved in what happened to therer is ir. >> neil: to be fair we know it what a washington official in charge of these tax exempt -- >> no doubt about it but he came -- >> neil: what i'm asking you, what if it's bigger than you think and there's more to it from washington than you appreciate. >> what i think is that the three elements that were most talked about, the irs, the nsa, and the question about the reporters and the phones being tapped, i frankly don't -- in my dealings with the public, i don't get a lot of questions on any of those, frankly. i think people are angry about the irs. it's right they're angry about the irs. we got to get to the bottom of it and got to make sure it doesn't happen, period. what they did was wrong.
1:41pm
no mistake about that. i think what the american public is most anxious about, most angry about, is that the congress is not working. don't think it's so much the president is not working. the president is doing his job, -- >> neil: they also say the healthcare law is not working. at it delayed-getting -- >> let me -- >> neil: well, we know that implementing it could be delayed. we know that even senator harry reid, max bachus, saying it could need more money and people are saying, we might have a turkey here. >> neil, i don't know we're -- we're not saying that being a turkey. we're saying this is a complex, big piece of legislation, that deals with healthcare -- neil do you think it was bigger than you thought, more complex than you thought? >> i think that we have had less cooperation in implementation, and that's making it more difficult. >> neil: this is the republicans' fault? >> well, yaw, we need to fund
1:42pm
adequately. we have a cost of $1.6 billion. the cbo says in the first ten years, that's -- ten-year costs, we're going to save 200 billion and a trillion dollars in the second ten years. i don't know whether those figures are exact but when you talk about 1%, 2% cost of implementation, that's less, frankly, than the prescription drug bill under bush in terms of percentage. there was less money -- >> neil: when max bachus talks about the fact he is frustrated. we hunt talking about republicans. he talked about this thing is more problematic than we knew. >> in doubt that -- no doubt, neil, this is a very complex piece of legislation dealing with 18 parts of our economy. so it's tough. i'm not sure i agree with max in his characterization of it, but having said that, there's no doubt it's complex, and one of the problems has been, it was
1:43pm
adopted on the theory that would we cooperate in implement indication,. neil: where do you see everything going? we got -- i'm with you. i don't necessarily buy one day or a couple of days ominous warning for everyone but obviously markets are rattled, folks are rattled. what do you say to calm them down? >> let me tell you, first of all, i reiterate, the reason well-person -- well-person ben bernanke said what he says, the economy is do well. >> neil: so everybody take a chill pill. >> chill out. secondly i would say to my republican and democratic colleagues, if we got together and passed a budget, passed appropriation bills in some kind of bipartisan fashion, so that the congress was working -- not that people would know x, y, or z provision, they would feel better about what is happening
1:44pm
in their country and their country. >> neil: steny hoyer, good to see you again. the fallout for ben bernanke and why he is getting all the blame. is that fair? vo: traveling you definitely end up meeting a lot more people but a friend under water is something completely different. i met a turtle friend today. avo: whatever you're looking for, expedia has more ways to help you find yours. i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh...no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir.
1:45pm
i'll believe that when pigs fly. ok, did she seriously just say that? geico. just a click away with our free mobile app. test.
1:46pm
1:47pm
>> neil: this is weird. ben bernanke getting slammed in the middle a, stocks fall more than 350 points. today. but where was the media when he said he was responsible for the big rally we were seeing all
1:48pm
year. to the media research center. brent, what i did hear and what i do remember is this was an obama rally when it was going on. when we had a selloff it was the bernanke selloff. i don't think i imagined that. >> you know, neil, the advantage that -- good news is no news, bad news is great news. where the good news of the stock rally was concerned, everybody you talked to said this thing is not real in the sense that money is being pumped into the system to keep it alive. now apparently it looks like the chickens have come home to roost, and. so they weren't covering it when it was going real well. now it's bernanke's fault. >> neil: when it was going well, you heard during the campaign is, all this has been doubling and soaring under us and we're
1:49pm
the reason why. but when it goes down -- >> the point is, looks good for obama as long as he didn't look into it. >> neil: another irony to this, as we get it into a little more, is this notion that actually what bernanke was acknowledging here, the economy might be well enough to stand up 'its own, and i can back out of here. that should be good news for folks who can get appreciate being sort of unweened from the government, but it's odd that don't like that. >> absolutely. which is why i think there's a need for sober analysis of steve forbes type of sober analysis where the economy is. your not getting anything from the press about the economy, which is rather disconcerting. i'm not -- it's very true.
1:50pm
your network is very serious. cnbc is serious but nobody else is. >> and fox business but that's okay. >> one of the things i do want to raise with you is what you raised outside the capitol what raised outside the capitol yesterday. because this got a lot of people talking, this big tea party rally. i want you to react to yourself. this was interesting. >> i have one more message about the national news media that have been aiding and abetting this censorship by not reporting to the american people! they're here. they're all around you! i want you to give them all a big hug. give them all a big kiss. and then tell them, damn you! do your jobs! report this story! >> do your jobs! >> wow. well, actually, they didn't give you much coverage, though. that was kind of weird. it was like the rally that never happened. >> well, first, i want to say that what you just heard was
1:51pm
positively shakespearean. but it makes my point. it's a huge rally on capitol hill. do you know that the irs, the bonuses that have been given out, one more irs scandal on top of scandals like hidden cameras and all these things that are coming up. you know how much coverage that got? 47 seconds on cbs this morning. that rally didn't get anything. they just don't want this. look, those people who have said that the obama administration's strategy is for this to go away are absolutely right. and the news media are aiding k and the news media are aiding k and noabetting. they are refusing to report a mammoth. and tea parties. i'll have more awkward conversations than i'm equipped for, because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way.
1:52pm
who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your future? we'll help you get there. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises.
1:53pm
1:54pm
well, if that doesn't prove
1:55pm
ronald reagan's point, markets go up, markets go down, i don't know what will. art laffer on the phone with me right now. that was a question i remember throwing at then the president, in the stock market crash. in other words, i'm not going to focus on day-by-day movements. i believe in the inherent and underlying direction of the economy. he was right. the experts were wrong. what do you think now with these gyrations? a little more to them now or what do you think? >> oh, i think these gyrations are exactly what reagan should have said and would have said at this stage. i mean, the market drop in '87, neil, if you'll remember, was 500 points on a much smaller base. >> it was like a quarter of the dow's value in one day. >> it was right after alan greenspan was named head of the fed. and i think reagan was perfectly correct and we were continuing on a boom of incredible roerp proportions. i think today's stock market is also just a gyration. and i think the economy looks much better than it has looked in a long, long time. >> but do you think there's a
1:56pm
boom? >> well, i don't know about a boom, but there's surely going to be appreciation in the market. i think the economy has leveled off and i think with politics in 2014, there will be a boom. it's not here now, but, you know, the t.i.p.s. yield, the treasury inflation protective securities yield has risen about 100 basis points. none of this rise in interest rates is due to inflation. >> very good point. >> which means the markets are expecting a much better rate of return over the next decade than they have been. which is another plus. >> i'm jumping on you, my friend, because everything was tight with breaking news. i want to thank you. art laffer, that was then, a quarter of the dow's value. today, 2%. still hurts. that's the difference. r money d. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody.
1:57pm
i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." to help protect your eye health as you age... would you take it? well, there is. [ male announcer ] it's called ocuvite. a vitamin dedicated to your eyes, from bausch + lomb. as you age, eyes can lose vital nutrients. ocuvite helps replenish key eye nutrients. ocuvite is uniquely formulated
1:58pm
to help protect your eye health. now that's a pill worth taking. [ male announcer ] ocuvite. help protect your eye health. and now there's ocuvite eye + multi. an eye vitamin and multivitamin in one.
1:59pm
2:00pm
hello, everyone. bob beckel, dana perino, and greg, it's 5:00 in new york city and this is "the five." we have a jam-packed shows today. the autopsy results for james gandolfini should be released at any moment. we'll have the latest ton tragic death of the legendary sopranos star. and michael bloomberg's anti-gun group apologizes after calling the dead boston bomber, muslim terrorists, a quote, victim. gutfeld has them and him in their crosshairs. and who's the worst celebrity role model for your kids? is it the biebs, lohan? we've got the list. but first, let's kick